29 Jun Question Find the break even point Oh
Question
Find the break even point Ohio Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630,000
Prepare a contribution margin income statement for ohio Company at the break-even point.
2.Assume the company’s fixed costs increase by $135,000. What amount of sales (in dollars) is needed to break even?
3. Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company targets an annual after-tax income of $640,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $464,000.
Ohio Company management predicts $570,000 of variable costs, $870,000 of fixed costs, and a pretax income of $369,500 in the next period. Management also predicts that the contribution margin per unit will be $67.
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